1. Green Roofing Materials has 7.5% bonds outstanding that are currently quoted at a price of $1,087 each. The bonds pay interest on December 1 and June 1. What is the cash price of this bond if today's date is May 1? There are 182 days from Dec. 1 to June1, 183 days from June 1 to Dec. 1, 151 days from Dec. 1 to May 1, and 31 days from May 1 to June 1.
A. $1,099.50
B. $1,105.75
C. $1,112.00
D. $1,118.11
E. $1,124.50
2. You buy an 8-year $1,000 par value bond today that has a 6% yield and a 6% annual payment coupon. In 1 year promised yields have risen to 7%. Your 1-year holding-period return was ___.
A. 0.61%
B. -5.39%
C. 1.28%
D. -3.25%